Note 2 - Accounts Receivable

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 2. Accounts Receivable

Accounts receivable consisted of the following (in thousands):

	March 31, 2014			December 31, 2013
Contracts in transit	$	100,110		$	85,272
Trade receivables		21,478			23,154
Vehicle receivables		24,556			23,606
Manufacturer receivables		30,834			31,662
Auto loan receivables		13,746		$	11,438
Other receivables		5,604			5,622
		196,328			180,754
Less: Allowance		(588	)		(546	)
Less: Long-term portion of accounts receivable, net		(12,963	)		(9,689	)
Total accounts receivable, net	$	182,777		$	170,519

Accounts receivable classifications include the following:

● Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received within five to ten days of selling a vehicle.

● Trade receivables are comprised of amounts due from customers, lenders for the commissions earned on financing and third parties for commissions earned on service contracts and insurance products.

● Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer.

● Manufacturer receivables represent amounts due from manufacturers including holdbacks, rebates, incentives and warranty claims.

● Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products.

Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, charge-off or repossession. Direct costs associated with loan originations are capitalized and expensed as interest income is recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due.

The allowance for doubtful accounts is estimated based on our historical write-off experience and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. The annual activity for charges and subsequent recoveries is immaterial.

The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.